Revenue and Income - Revenues for the three months ended March 31, 2024, were $91.7 million, an increase of $8.6 million, or 10.4%, from $83.1 million in the prior year[115]. - Interest income increased by $4.2 million, or 5.3%, to $84.3 million, driven by a 4.8% increase in the average balance of the loan portfolio[116]. - The average interest yield on the loan portfolio increased from 11.2% in the prior year to 11.3% in the current year[116]. - The net interest yield decreased to 4.9% for the three months ended March 31, 2024, compared to 6.1% in the prior year[128]. Operating Expenses - Total operating expenses for the three months ended March 31, 2024, were $85.2 million, an increase of $20.5 million, or 31.7%, compared to $64.7 million in the prior period[120]. - Employee costs rose to $24.4 million for the three months ended March 31, 2024, compared to $22.0 million in the same quarter of the previous year[121]. - Interest expense for the three months ended March 31, 2024, was $42.0 million, representing 49.3% of total operating expenses[122]. - Sales expenses decreased to $4.9 million during the three months ended March 31, 2024, down from $5.7 million in the same quarter in 2023[134]. Portfolio and Contracts - The managed portfolio outstanding increased to $3,021.2 million as of March 31, 2024, compared to $2,881.8 million in the prior year[121]. - Contracts purchased in dollar terms for the three months ended March 31, 2024, were $346.3 million, down from $415.2 million in the prior year[121]. - The company originated $16.1 million under a third-party program for the three months ended March 31, 2024, with a managed portfolio including $222.2 million of such receivables[100]. - The total managed portfolio, excluding third-party portfolios, was $3,021.2 million as of March 31, 2024, compared to $2,881.8 million as of March 31, 2023[153]. Debt and Financing - The company issued $280.9 million in new securitization trust debt in Q1 2024, compared to $324.8 million in Q1 2023[161]. - Total debt outstanding as of March 31, 2024, was approximately $2,648.3 million, including $2,277.7 million in securitization trust debt[168]. - The company had unrestricted cash of $13.2 million and $150.5 million in available borrowings under warehouse credit facilities as of March 31, 2024[164]. - The company experienced net repayments on warehouse lines of credit of $17.2 million in Q1 2024, compared to net proceeds of $7,000 in the prior year[161]. Credit Losses and Delinquencies - The company recorded a reduction to provision for credit losses of $1.6 million for the three months ended March 31, 2024, compared to $9.0 million in the same period in 2023[131]. - Total delinquencies as a percentage of gross servicing portfolio increased to 10.6% as of March 31, 2024, compared to 10.0% in the prior year[140]. - Annualized net charge-offs as a percentage of average servicing portfolio increased to 7.8% for the three months ended March 31, 2024, up from 5.2% for the same period in 2023[144]. - The company does not recognize interest income for contracts that are greater than 90 days past due, indicating a focus on managing delinquency[154]. Cash Flow - Net cash provided by operating activities for the three-month period ended March 31, 2024, was $52.7 million, a decrease of 19% compared to $65.1 million for the same period in 2023[158]. - Net cash used in investing activities was $108.6 million for the three months ended March 31, 2024, compared to $121.2 million in the prior year period[159]. - Net cash provided by financing activities for Q1 2024 was $81.5 million, up from $62.3 million in Q1 2023[161]. Extensions and Performance - The average number of extensions granted per month increased to 6,760 in the three months ended March 31, 2024, compared to 6,089 in the same period of 2023[152]. - As of March 31, 2024, 91.8% of accounts granted extensions in 2023 were either paid in full or active and performing[150]. - The company has been able to reduce extensions since 2019 by being more selective in granting them, despite rising delinquency rates[153].
CPS(CPSS) - 2024 Q1 - Quarterly Report